Sterling & Wilson Renewable Energy
Stock Snapshot
Price Performance
Vista Outlook
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Sterling and Wilson Renewable Energy (SWSOLAR) is navigating a pivotal phase characterized by a robust domestic order book and a strategic focus on utility-scale projects, particularly in solar-plus-storage and hybrid solutions. Management's commentary highlights a significant bid pipeline of 31 GW and an unexecuted order value of INR 11,813 crore, which underpins Vista's revenue growth expectations. The company's emphasis on maintaining cost discipline, targeting EPC gross margins of 8-10%, and enhancing its O&M portfolio, which has expanded tenfold over nine years, supports a stable margin outlook. However, execution risks in international markets and heightened competition domestically remain critical watchpoints. The macro environment in India, marked by strong manufacturing activity and favorable liquidity conditions, further bolsters SWSOLAR's growth prospects. Over the next 12-24 months, key opportunities include the commissioning of large-scale projects and expansion into new markets, while challenges such as potential cost overruns and regulatory changes warrant close monitoring. Overall, Vista's forecast reflects a balanced view, with expected revenue growth and stable margins aligning with the company's strategic initiatives and market dynamics
Why We Like This Stock
- Strong domestic order book and significant bid pipeline provide visibility for future revenue growth
- Management's focus on cost discipline and margin stabilization supports a favorable earnings outlook
- Favorable macroeconomic conditions in India enhance the company's growth prospects
Things To Watch Out For
- Execution risks in international markets could impact project timelines and profitability
- Intense competition in the domestic solar landscape may pressure margins and market share
- Potential regulatory changes and supplier concentration risks could affect operational stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,035 | 6,302 | 7,548 | 6,868 | 9,768 |
| Profit Before Tax (Cr.) | -172 | 162 | 341 | 388 | 525 |
| PBT Margin | -5.7% | 2.6% | 451.8% | 5.7% | 5.4% |
| Net Profit (Cr.) | -211 | 134 | 269 | 361 | 462 |
| Earnings Per Share | -9.1 | 5.6 | 10.9 | 14.7 | 19.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Nuvama | ▲ Buy | 300 | 28-Apr-2026 |
Company Overview
Show Company Profile
Sterling and Wilson Renewable Energy Limited provides renewable engineering, procurement, and construction (EPC) services in India, Europe, the Middle East, North Africa, rest of Africa, the United States, Latin America, and Australia. It operates through two segments, EPC Business; and Operations and Maintenance (O&M) Service. The company offers design and engineering; construction, installation, testing, commissioning, grid integration, and long-term O&M; solar plus storage solutions; and project management and planning, maintenance manual development, anchoring and mooring, issuance of design book module, equipment installation, and bathymetric and geotechnical assessment studies for utility-scale and floating solar, hybrid, energy storage, battery energy storage systems. It also engages in the import, export, and trading of solar modules, structures, invertors, and related accessories; installation and maintenance of renewable energy power generating facilities; and setting up of power plants, solar energy systems, renewable energy systems, and hybrid energy systems and energy storage plants for power generation. In addition, the company provides O&M and asset management solutions to EPC projects and third-party clients. It serves independent power producers, developers, and equity funds. The company was formerly known as Sterling and Wilson Solar Limited and changed its name to Sterling and Wilson Renewable Energy Limited in November 2021. Sterling and Wilson Renewable Energy Limited was founded in 2011 and is based in Mumbai, India.